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Non-GAAP adjustments to net income appearing in the earnings releases of the S&P 100: An analysis of frequency of occurrence, materiality and rationale

Author

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  • Webber, Sarah J.
  • Nichols, Nancy B.
  • Street, Donna L.
  • Cereola, Sandra J.

Abstract

For 2005 through 2010, we examine the extent to which S&P 100 companies provide non-GAAP income measures in their annual earnings releases. Our findings provide insight into the evolving nature and magnitude of the adjusting items characteristic of non-GAAP income measures during the post-Reg G period. We find that the number of S&P 100 companies disclosing a non-GAAP income measure increases significantly from 44% to 60% during our period of study.

Suggested Citation

  • Webber, Sarah J. & Nichols, Nancy B. & Street, Donna L. & Cereola, Sandra J., 2013. "Non-GAAP adjustments to net income appearing in the earnings releases of the S&P 100: An analysis of frequency of occurrence, materiality and rationale," Research in Accounting Regulation, Elsevier, vol. 25(2), pages 236-251.
    • Handle: RePEc:eee:reacre:v:25:y:2013:i:2:p:236-251
    DOI: 10.1016/j.racreg.2013.08.011
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    Cited by:

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    2. Wang, Qian & Ettredge, Michael, 2015. "Discretionary allocation of corporate income to segments," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 1-13.
    3. Denis Cormier & Samira Demaria, 2014. "Pertinence des mesures non-GAAP pour les marchés boursiers : le cas des firmes du CAC 40," GREDEG Working Papers 2014-22, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Elizabeth A. Rainsbury, 2017. "The Impact of the FMA Guidelines on Non†GAAP Earnings Disclosures," Australian Accounting Review, CPA Australia, vol. 27(4), pages 480-493, December.
    5. Cheng‐Hsun Lee, 2022. "Non‐generally accepted accounting principles disclosures and audit committee chairs’ external directorships," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 111-139, January.
    6. Silvia Gardini & F. Marta L. Di Lascio & Franco Visani, 2017. "Opportunism in disclosing pro-forma indicators: rationale and contextual drivers," BEMPS - Bozen Economics & Management Paper Series BEMPS42, Faculty of Economics and Management at the Free University of Bozen.

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